Default Notice

[simon.b]

I've had a letter through from one of my creditors saying 'Deafult Notice' threatening that if I dont' pay the arrears by the date set then they will escalate it - how serious is this in the grand scheme of things bearing in mind I'm either going BR or trying to sort out lump sum offers to my creditors?

[Adam Davies]

Hi
This is a standard natural progression when you fall behind with payments.A default notice will stay on your credit file for 6 years.A county court summons may follow in due course once you fail to respond to the default notice.
How close are you to the lump sum offer ? A remortgage to High st rates may be a problem with a default on file so act now before it,s registered.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[simon.b]

I was hoping the offers had been made by now but they appear not to have been so I'm chasing this tonight as the defayult notice deadline is in 10 days.

If the Deafult deadline is hit and I haven't made the payment and so it goes on my credit file, will I still be able to get a mortgage but at a higher rate of interest? Is 10 days enough time to submit an offer and have it accepted do you think? I'm trying to push things along... maybe we should clear the arrears they're asking for but then how ong until another one comes through?

[Adam Davies]

Hi
You need to remind me of what you are offering / Is it a full and final by way if a remortgage and if so have you got your mortgage offer through ?
If you pay them whilst arranging an IVA it would be seen to be preferring them over other creditors.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[simon.b]

Hi Andy

My Grandma has stepped in and offered me an amount of money which is intended for a lump sum offer to each of my creditors. My Uncle is facilitating the whole thing on my behalf and is hoping to make the offers and come to an agreement between himself and the creditors so at the moment I don't have a mortgage.

My hope is to get one in about 2 / 2.5 years although I don't want to put myself in a position where I make this impossible for myself...

Thanks for taking the time to reply with your advice, much appreciated as always.

Simon

[sonyse2t5]

I had some of these D/Notice served before as I was told reduced payments can be accepted, it is a legal thing - after this you will get a Termination notice of the account, thats when they can take action,after 30 days. It is this Term' Notice that is very important....

However as long as you tell them - Collections people- what you are doing to pay - they wouldn't take you to court even after that but you have to show you are doing something concrete and give progress update.

Having done DMP you get to know these things.

[Adam Davies]

Hi Simon
A default notice will have little affect on obtaining a mortgage,you will probably have to go via a broker and use a sub prime lender but the rates theses days are very competitive.
There is a mortgage for everyone out there as long as you have a reasonable deposit.
Good luck with your proposal and keep us all informed as to how you get on.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[simon.b]

Thanks Andy - sorry was worried when you said:

"A remortgage to High st rates may be a problem with a default on file so act now before it,s registered"

I'm confused though now because your last message said rates are competitive and there's a mortage for everyone?

Sorry if I'm missing the point Andy!

[simon.b]

Thanks to you also Sonye... hoping things will speed up a bit now...

[Adam Davies]

Hi
If you were hoping to get the "best" rate[generally high st bank rates] then you will need a clear credit record.If you have a default registered then you will not get that rate but you will get a mortgage with a slightly higher rate that I would consider is still competitive.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[simon.b]

Ah I see, thanks Andy - was worried I'd struggle to get one at all or get a ridiculously high rate... thank you